GLP buys stake in key logistic facility player

Global Logistic Properties (GLP) delivered an early Christmas gift to its shareholders

yesterday with an acquisition that will give it a stake in China's second largest logistic

facilities provider. The deal, however, received a lukewarm response from investors

who appear unwilling to take up new positions as the year draws close to an end. The

owner of warehouses and other logistic assets in China and Japan said it has bought

19.9 per cent of Shenzhen Chiwan Petroleum Supply Base Co (SCPSB) for HK$539.2

million (S$90.8 million). SCPSB is the parent of China logistic facilities player BLOGIS -

the No 2 provider of such properties in the country after GLP. The price means that

GLP will pay HK$11.75 for each share acquired, and is at a 1.4 per cent discount to

SCPSB's closing price of HK$11.92 on Dec 21. It will use the proceeds from its recent

initial public offering to pay for the acquisition.